Foreclosure Prevention Act will contains $4 billion for CDBG
The American Housing Rescue and Foreclosure Prevention Act, signed into law Wednesday by President Bush, will contain an additional $4 billion for the Community Development Block Grant (CDBG) program. Local government associations, including the Washington-based National League of Cities (NLC), fought for the inclusion of the extra money, which cities can use to buy foreclosed properties in an effort to stabilize property values.
NLC President and Madison, Ala., Councilwoman Cynthia McCollum praised the bipartisan cooperation that led to the act’s passage. “The administration and Congress are often criticized for partisanship and stalemates on the most vexing problems facing our nation, so it is particularly important to acknowledge when the system works as the framers of the Constitution intended,” McCollum said in a statement. “The legislation signed today gives local governments the federal assistance they need to bolster and expand the measures they have begun on a city-by-city level.”
Bush had threatened to veto the bill, in part because of the one-time $4 billion allocation to CDBG, but NLC officials, along with representatives from other organizations, met with White House advisors and lobbied elected officials to keep the funding in the bill. More information is available at